Which of the Following Is Not True Regarding Depreciation

question 68

Multiple Choice

Which of the following is not true regarding depreciation?

• A) Depreciation allocates the cost of a fixed asset over its estimated life.
• B) Depreciation expense reflects the decrease in market value each year.
• C) Depreciation is an allocation not a valuation method.
• D) Depreciation expense does not measure changes in market value.

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